LCH 'disappointed' by Esma’s FX clearing decision

Clearing house criticises decision to abandon a clearing obligation for non-deliverable FX forwards, saying the securities industry was ready for the mandate

By

James Rundle

February 10, 2015 Updated: 3:44 p.m. GMT

The chief executive of LCH.Clearnet’s specialist foreign exchange clearing house has criticised the decision by European regulators to abandon clearing for certain types of FX trades.

The European Securities and Markets Authority decision last week not to introduce a clearing mandate for non-deliverable FX forwards - a type of contract where counterparties settle an FX transaction at an agreed time for a fixed rate - came after it...